News release

Waikato rural property sales picking up

Waikato may be leading the rest of the country out of the downturn in farm sales, says a leading local rural real estate specialist.

Ian Morgan, PGG Wrightson Real Estate sales manager for Waikato, said the sector may have turned the corner, with the Waikato region accounting for around 40 per cent of sales made by the national rural real estate leader.

“During the busy spring sales period, 30 rural sales were completed by PGG Wrightson nationwide, involving $50 million worth of rural real estate, of which just under $20 million was in the Waikato. Nationally and regionally that represents a significant increase on activity on the preceding few months, and the momentum seems to have continued into the New Year.

“Conditional sales, that is those with a number of contractual issues to be completed prior to confirmation, are at the highest level since 2008. At present we have around $30 million worth of Waikato properties in that category. Because of the nature of real estate transactions, conditional sales are generally a firm indicator of sales volumes in the near future.

“These sales signal a shift in vendors’ expectations on value. Many with farms to sell have begun to recognise that, for the medium to long term, the market has softened. Bankers are only providing support to prospective purchasers when the business proposition is strong and viable.

“As a result of positive and successful spring sales campaigns, PGG Wrightson is now procuring new stock for the summer and autumn sale season, which we expect will see further increased activity. The upsurge in recent sales, while not a boom, does signal the return of some market activity. Coming at this time, it is a positive start to the calendar year and bodes well for further improvement in market conditions for the rest of 2011,” Mr Morgan said.

ENDS

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